This document discusses decoupling in marketing communications and production. It begins by defining decoupling as separating creative strategy and development from execution and delivery. Many large brands are adopting this approach to improve efficiency and reduce costs. Decoupling involves using specialized production suppliers or shared services models to handle execution tasks more cost effectively. It allows brands to leverage creative assets across multiple campaigns. Successful decoupling requires subject matter expertise, asset management systems, and an understanding of workflows and quality standards. The document evaluates different decoupling tactics like nearshoring, outsourcing, offshoring, and automation. It provides action plans for agencies, marketers, and print service providers to prepare for and take advantage of decoupling opportunities.

1. For Marketing Procurement Professionals
Decoupling 2010
The Strategic Imperative for Marketing Supply Chain Productivity
Decoupling is attracting serious attention and consideration as a productivity innovation
for advertisers and marketers because of intense pressures to reduce costs and leverage
investments in creative ideas. Understanding what decoupling means, how it works and why it
is important to the marketing supply chain is the focus of this white paper.
Decoupling Marketing Communications Production Services Improves Efficiency
Marketing supply chain professionals define decoupling as separating strategy and creative
by Michael J. Boyle
development from execution and delivery. Many large, multinational brands are decoupling
About the Author their marketing communications strategy and creative from the execution, and adopting a
Michael Boyle is a shared services model for production.
consultant, change agent
and subject matter expert Decoupling is a result of cost pressures on marketing budgets and procurement’s involvement
on Creative Services and
in the marketing supply chain. The execution model of ‘create assets once, use once’ is defunct.
Production Management
It’s been replaced by create assets once, use often. Advertising decoupling started in Europe.
with 25 years experience. His
organizational and financial Charles Kirchner, Chairman of Marketing Supply Chain Ltd., defines it as any low visibility, back
talents were acquired office category such as digital and print production, or communications materials sourcing.
while overhauling non- Decoupling is one of the specialties of production suppliers who compete openly with
performing production units agencies for execution projects. It is gaining acceptance and popularity in several categories—
at agencies and financial
pharmaceutical/biotech/medical devices, aerospace and defense, and technology. Decoupling
services companies. You
is also growing throughout financial services, because it promises lower costs and improved
can connect with him at
processmethods@gmail.com use of creative ideas and brand assets.
Decoupling is another chapter in the unbundling of services once provided by full service
agencies who created execution silos based on lines of business, brands or clients. It is also an
outcome of media fragmentation. Execution of broadcast, digital and print is often handled
by third parties who deal directly with marketers, or by consultants hired by the advertisers
to manage costs. Operating in low cost centers of competence, these groups deliver speed,
flexibility and operational excellence that traditional agencies cannot match. Decoupling also
delivers efficiency through an extraordinary mix of application innovation and standardized
shared services that yields an agile, cost-effective capability.
Most procurement officers acknowledge the valuable guidance provided by subject matter
experts (SMEs) to optimizing the workability of a decoupled execution solution. A recent Ad
Age interview with Pfizer’s procurement executive confirms SMEs as the bedrock to decoupling
sustainability. Successful decoupling also relies on digital asset management and content
management systems (DAM/CMS) because they deliver better utilization of brand assets and
creative ideas—thus reducing the production cost of campaign elements. DAM/CMS is the
underpinning of any decoupling endeavor because it shifts the stewardship of the brand
assets and creative concepts from agencies to marketers. Create once, use often becomes
the new reality. This yields greater leverage and independence for marketers that can be
used to improve the creative agency’s performance and highlight more disintermediation
opportunities and more process innovation.
Page 1 © 2010 Michael J Boyle. Al rights reserved.

2. Decoupling 2010
The Strategic Imperative for Marketing Supply Chain Productivity For Marketing Procurement Professionals
Creating and implementing an integrated DAM/CMS is a major initiative. It demands substantial intellectual and financial
resources. Its the foundation for decoupling which generates real savings — usually in the range of 25-40% of overall
production costs. DAM/CMS also promises intangible results such as improved brand integrity from create assets once,
use them often — layouts, images, taglines, headlines and other campaign elements. One example is localization kits with
culturally appropriate content, created simultaneously during production to enable global campaigns with fewer assets at
greatly reduced costs.
Decoupling’s underlying driver is asset and content management. Marketers are implementing enterprise level asset and
content management systems — as fixed installations or software as a service (SaaS) solutions because they guarantee
independence from any holding company, creative group or production resource. Once in place, these systems become
the basis for a number of decoupling strategies and tactics — near-sourcing, outsourcing, off-shoring and automation.
Engaging in a successful decoupling project without DAM/CMS and SMEs is possible, but the ROI will be significantly
reduced and the project is less likely to succeed.
Decoupling — A Marketing Supply Chain Management Best Practice
Decoupling is a highly effective marketing supply chain productivity innovation with the appropriate implementation.
It requires:
u Subject matter expertise focused on the nuances of the specific executions to identify the hidden savings
u Access to all the creative assets and content — who controls your assets and how are they tagged?
u Insights to the overall goals and objectives of the marketing campaign and advertising strategy
u Knowledge of the budgets and the agency compensation model used
u A thorough understanding of the workflows, processes, quality levels, media, distribution and final outputs required
How Decoupling Works
Full Service Agency Process Decoupled Process
Research Creative Approved
Development Creative sent to
of concepts
Decoupled
for Broadcast
Global/Regional
Strategy Production
Presentation Print and Online.
Group
including messaging,
media plan, campaign Decoupled
tactics, and other Global/Regional
Creative Creative Agency Production Group
mandatories. Client
Presentation Executes
Decides Edits, localizes,
Broadcast: TV & Video
to Master Version translates, versions,
Animatics/Storyboards,
Client Approved Decouple Delivers all assets/content and other adaptations.
Radio Scripts
Strategy Production to decoupled global/
Print: Ads, DM, OOH
regional production group.
Online: Site Maps and
Wireframes Decoupled
Global/Regional
Creative Production Group
Creative Brief Agency Receives approved
Broadcast
Print Approved Creative Develops VID Brand Style Guide for
with budget. (Visual Identity) execution of all campaign
Online
Brand Style Guide elements. Online
for all media with approvals by clients and
Production Specs. creatives
ensures compliance.
Production
This process can be applied to any decoupling tactic.

3. Decoupling 2010
The Strategic Imperative for Marketing Supply Chain Productivity For Marketing Procurement Professionals
Evaluating Four Decoupling Tactics
1. Near-sourcing is locating a decoupled execution resource within a specific geographic proximity or time boundary.
Near-sourced resources provide a range of service, flexibility and control. A domestic company might near-source
their execution to a low cost center of competence within the U.S. — such as Maine, Las Vegas, Texas and other similar
location. The advantages are a unique set of services and professional skills that dovetail to the unique strengths and
specialties of the marketer, plus moderate time zone differences, local nomenclature and bandwidth to support large file
transfers. One downside of near-sourcing is the lack of immediate, measurable savings. One derivative of near-sourcing
is nearshoring—locating U.S. production to Canada or Central America. Cheil Communications has executed a number
of high-profile communications campaigns for Samsung Electronics and could be considered an excellent near-sourcing
partner for Samsung. Creative Services Video Optical (CSVO) and Hogarth are other near-sourcing options in the U.S. and
EMEA respectively.
2. Outsourcing is any decoupled execution contracted to a third party provider — be it co-located, near-sourced,
near-shored or offshored. The primary advantage is outsourced resources produce work according to any number of
client dictates (confidentiality, rate cards, SLAs, etc.) while insuring lower costs. Decoupled marketing communications
functions typically outsourced are high volume, repetitive tasks. This includes presentations, page building (mechanicals)
according to a template, low level digital production of banners and emails, or video post production services such as
duplication, versioning, delivery and storage. Outsourcing companies are often based on a particular functional silo
or business silos such as digital production or financial services. Williams Lea is one example of a global outsourcing
company primarily for financial services. Other case studies highlight the success of direct response marketers who
generate catalogs, banners, emails and direct mail packages using outsourced solutions with low cost production
capabilities. One limitation with outsourcing is matching needs to capabilities. Outsourcing providers often promise to
be all things to all clients.
3. Offshoring is commonly associated with outsourcing and implies relocating executional work to low cost centers of
competence in locations such as Argentina, India and Bangladesh. Offshoring presents challenges of different languages
and cultures, long distance relationships and different time zones, plus communication barriers. The benefit of offshoring
is securing the lowest possible cost for production — one of the stated goals of decoupling. Organizations like Office
Tiger, Clipping Factory, AvVenta and others regularly execute new projects for many U.S. companies in Asia and Central
America at a fraction of the domestic cost. Numerous assignments and executions for many Fortune 500 companies
such as Morgan Stanley, Dell, Merck, Pfizer and Mercedes-Benz prove the success of this model.
4. Automation using dynamic content and dynamic sizing is a technology that supports decoupling. Automation
solutions leverage robust DAM/CMS installations. They are usually sponsored by the traditional print service providers
like Quad Graphics, Schawk and Xerox. Automation of banners, emails and print materials continues to grow. Early
automation solutions enabled the delivery of dynamic content (art and copy) to a fixed template. More robust solutions
now enable dynamic content, dynamic sizing, quality assurance and delivery of approved creative content to various
media distribution outlets. Automation relies heavily on templated creative — an idea resisted by traditional creative
teams. However, CRM, brand campaigns, retail ads and POS materials are increasingly executed via automation. Creative
Print Technologies, Pica9, and Document Sciences are automation providers in this space. Each has a specialty. All use
similar dynamic content tools and techniques.
Page 3 © 2010 Michael J Boyle. Al rights reserved.

4. Decoupling 2010
The Strategic Imperative for Marketing Supply Chain Productivity For Marketing Procurement Professionals
Action Plan for Agencies — Answering the Decoupling Challenge
1. Get lean fast! Clients often decouple because agencies are perceived as inefficient. Standardize, consolidate and
streamline your DAM/CMS, project management, workflow tools, best practices, rate cards and other production
disciplines. This requires a comprehensive inventory of people, technology, processes.
2. Develop a decoupling response strategy that is not fear, uncertainty and doubt (FUD). Great creative is only as good
as the worst execution. Partner with a low cost execution capability that supports your creative ideas. An inexpensive,
high capacity, decoupled production alternative gives a struggling agency the execution powerhouse that they need
to win new clients and retain old ones.
3. Innovate, innovate, innovate. Challenge your entire organization to lower costs and develop unusual execution
solutions. Challenge your partners to do likewise. Innovation yields extraordinary solutions that you can own and sell.
Foster a culture of innovation.
4. Initiate a discussion with clients about decoupling. Become their trusted advisors and SMEs. Educate them on the
questions, alternatives and pitfalls. Collaborate with them on decoupling pilot projects.
5. Study the decoupling marketplace. Identify and establish key relationships. Decoupling is already a stratified offering
with huge growth potential. Know the players, the rules, the variables and the nuances of decoupling. It’s another new
business channel.
6. Automate at least one production process. Apply change management techniques to insure success.
Action Plan for Marketers — Preparing to Decouple
1. Audit your DAM/CMS. Scrutinize every aspect of your creative assets and marketing content. Question who, what, when
where, why and how it’s related to the marketing strategy and implementation. Understand your exposure.
2. Audit your marketing supply chain spend for all broadcast/print/online executions.
3. Audit the processes, methods, procedures and workflows related to asset and content creation. Identify and
standardize the tools, file formats, metadata and tagging conventions. Understand the production silos. Eliminate
duplication of effort. Streamline all review and approval processes.
4. Create a decoupling costing model that allows you to evaluate the four tactics, the financial implications of each and
the ROI related to decoupling.
5. Begin decoupling due diligence. Identify SMEs and trusted advisors. Write an RFI/RFP/RFQ.
Action Plan for Print Service Providers — Becoming a Decoupling Supplier
1. Get lean fast! Empower your management team to make decisions and take responsibility. Streamline your project
management team. Standardize and consolidate methods, procedures, workflow tools and best practices.
2. Identify and cultivate your subject matter experts (SMEs). Know who they are, what they know and how you can
leverage their knowledge with existing clients and in new business presentations.
3. Study your existing clients — recognize the opportunities for incremental, value-added services such as DAM/CMS.
4. Understand your core marketing supply chain offerings (products and services). Add context marketing supply
chain functions (incremental services that can be performed by your SMEs) where appropriate.
5. Educate your sales team on the new realities. Seek opportunities for decoupling RFPs.
Page 4 © 2010 Michael J Boyle. Al rights reserved.

5. Decoupling 2010
The Strategic Imperative for Marketing Supply Chain Productivity For Marketing Procurement Professionals
Other Related Topics
1. Separating core marketing supply chain functions (products and services) from context marketing supply chain
functions (ancillary activities that can be performed by outside SMEs).
2. Conducting decoupling due diligence including a SWOT analysis and writing a decoupling RFI.
3. Service level agreements that inhibit innovation by eliminating margin.
4. Beyond Decoupling — how to amplify the decoupling model to drive incremental savings.
5. Cultural barriers to decoupling (internal & external). Decoupling that is responsive to the needs of the business.
6. Internal vs. External decoupling tactics. Decoupling execution to an internal group insures higher levels of service
while decoupling execution to external resources often delivers the best price.
7. Decoupling Production without Decoupling Creativity.
Page 5 © 2010 Michael J Boyle. Al rights reserved.